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Benzinga's M&A Chatter for Friday May 18, 2012

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The following are the M&A deals, rumors and chatter circulating on Wall Street for Friday May 18, 2012:

El Paso Pipeline Partners Agrees to Acquire Cheyenne Plains Pipeline and Additional Interest in Colorado Interstate Gas Company from El Paso Corporation

The Deal:
El Paso Pipeline Partners, L.P. (NYSE: EPB) announced Friday that it had agreed to acquire the remaining 14-percent interest in Colorado Interstate Gas Company, L.L.C. and all of Cheyenne Plains Investment Company, L.L.C., which owns Cheyenne Plains Gas Pipeline Company, L.L.C. from El Paso Corporation (NYSE: EP) for $635 million and the assumption of approximately $242 million of proportional debt.

The transaction, which is expected to close contemporaneously with Kinder Morgan, Inc.'s acquisition of El Paso Corporation, will be immediately accretive to distributable cash flow and is being funded with approximately $571 million of cash from borrowings under EPB's revolving credit facility and $64 million of equity from the issuance of common units to El Paso Corporation. El Paso Corporation will make an approximate $1 million general partner capital contribution to maintain its 2 percent general partner interest in El Paso Pipeline Partners, L.P.

El Paso Pipeline Partners, L.P. closed at $30.64 on Friday, a loss of 5.72% on twice the average daily volume.

Winnebago Industries Receives Unsolicited Non-Binding Highly-Conditional Letter from North Street Capital

The Offer:
Winnebago Industries (NYSE: WGO) confirmed Friday that it is in receipt of a letter from North Street Capital, LP proposing to acquire all outstanding common shares of Winnebago Industries at a price of $11.00 per share in cash. Company management has reviewed with the board of directors of the Company information provided by North Street in connection with the offer and has determined that, to date, it has not received sufficient information to deem the offer as credible. Consistent with its fiduciary duties to act in the best interests of Winnebago Industries and its stockholders, and in consultation with its independent financial and legal advisors, the board of directors of the Company will review any additional information relating to the North Street letter and respond in due course.

The "offer" described in the letter is highly conditional, requiring, among other things, due diligence and further negotiation. The Company advises that no offer has been made to shareholders and that they need not take any action at this time in response to North Street's letter.

Winnebago Industries closed at $8.66 on Friday, a gain of 1.66% on 10 times the average daily volume.

Posted-In: Long Ideas News Short Ideas Rumors M&A After-Hours Center Movers Trading Ideas

 

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